[Solved] The Following Information Relates to a Company's Aggregate Production Planning

Question 45
Multiple Choice

The following information relates to a company's aggregate production planning activities: img Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the total cost of the production plan (hiring cost, firing cost, and inventory cost) is

A) $60,000
B) $275,000
C) $335,000
D) $610,000

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